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Asian shipowners reject EU proposal to pay for ship recycling licenses

Staff Writer | July 18, 2016
The Asian Shipowners Association has rejected proposals to pay for EU ship recycling licenses, it said.
Asia shipping
Shipping   "Neither realistic nor practical"
The European Commission is considering introducing a levy on all ships entering EU ports as a means of improving working and environmental conditions in developing countries where most ship recycling yards are located, Platts reports.

India, Bangladesh, China and Pakistan are global centers of ship breaking and recycling, with Alang in India being the largest in the world.

The levy will be returned at the end of a vessel's working life only if the ship is recycled at a yard approved by the EC.

Given the periods of time possibly involved and that vessels' owners could change, the process was "neither realistic nor practical", the ASA said.

Instead, the ASA is committed to improving Asian recycling yards by encouraging member associations to use certified yards, or ones that make known their best practices to the industry.

It said the European Commission should concentrate its efforts on getting member states to ratify the HKC and recognize efforts being made by recycling yards in Asia to gain certification in compliance with IMO standards, "because the Convention will not enter into force unless some of ship recycling states in Asia ratify the Convention".

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, or HKC, was adopted by the International Maritime Organisation at a conference in Hong Kong in 2009, but only a handful of the 15 ship-owning and ship scrapping nations representing 40% of the world's gross tonnage have ratified it.